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This study examines the global paint and coatings industry, which is divided into three major markets:
new residential construction
residential remodel and repaint
furniture and fixtures
other manufacturing (e.g., prefabricated building components, appliances, electronics, machinery, aerospace equipment)
protective and specialty
corrosion protection (including pipeline coatings
marine (e.g., commercial ships, offshore oil and gas drilling rigs, product platforms)
other specialty coatings (e.g., HVAC equipment, oil and gas pipelines, roads and bridges, electrical equipment)
The paint and coatings market is also examined by formulation, including:
water-based coatings (e.g., emulsions/latex paints, water-soluble paints, water-dispersible paints/colloidal coatings, water-based alkyds
other products, including radiation-curable coatings
Excluded from the scope of the study are products such as:
adhesives and sealants
Historical data (2009, 2014, and 2019) are reported in metric tons and current US dollars, with forecasts provided for 2024 and 2029. The term “demand” actually refers to “apparent consumption”, and is defined as production (also referred to variously as “shipments”, “output”, or “supply”) from a country’s domestic manufacturing facilities plus imports minus exports. It is used interchangeably with the terms “market”, “sales”, and “consumption”. In many cases, coatings production data were converted from gallons or liters based on estimates of the average weight.
Demand by Region
The world’s emerging markets – most predominantly those in the Asia/Pacific region – will continue to post the fastest gains, driven by rising income levels and expanding industrial sectors in these countries.
Going forward, demand will be supported by:
gains in nonresidential construction in the Asia/Pacific and Africa/Mideast regions
rising DIY activity in the US
government efforts in many developing countries to improve housing quality
global gains in manufacturing activity
The high per capita incomes and sustainability-minded consumers in developed countries have facilitated the enactment of strict environmental laws affecting paint and coating formulations and driven a move to water-based and other non-solvent formulations.
However, the trend toward the use of more environmentally favorable paints is increasingly seen in other areas of the world as well:
In part, the diffusion of global environmental standards is a reflection of increased trade between developing and developed nations, since exported products must meet the environmental codes of the target market.
This trend is also a reflection of the presence of major Western-based paint companies in developing markets. The large firms that dominate the industry often offer their environmentally compliant products worldwide, even in regions where environmental laws are relatively lax.
Demand by Market
The paint and coatings market can be divided into three major segments – architectural, manufacturing, and protective and specialty coatings:
Architectural paints encompass those products used on the interior and exterior of buildings, both residential and nonresidential.
Manufacturing coatings include those used by OEMs in the production of manufactured goods, including motor vehicles, furniture, machinery, packaging, appliances, and prefabricated building components.
All other paints and coatings are included in the protective and specialty markets, such as industrial maintenance, corrosion protection, marine, vehicle refinishing, and traffic coatings.
The composition of a coating depends on the application where it is used and what properties are desired by the end user:
In architectural applications, paints are generally applied for aesthetic reasons, such as to impart color and luster, and/or to protect structures from weather conditions.
Among manufacturing and maintenance/specialty coatings, performance attributes (such as corrosion resistance or anti-fouling properties) are generally more important than aesthetic properties.
Exceptions include motor vehicle coatings, which are specified for the quality of both performance and decorative properties.
All of the major markets will see demand gains going forward:
The architectural market will remain the largest market for paints and coatings, supported by ongoing remodeling and repainting demand throughout the world. However, weak growth or outright declines in new housing in some regions will restrain faster growth.
Gains in the manufacturing market will be boosted by an acceleration in global motor vehicle production.
Growth for the protective and specialty market will be supported by industrial output and associated maintenance coatings, as well as rising motor vehicle ownership worldwide, resulting in increasing use of automotive refinish coatings.
Demand by Formulation
In a continuation of a well-established trend, the global paint and coatings market will become less reliant on solvent-based formulations, supporting market share gains for water-based paint, powder coatings, and other high solids formulations:
Objections to traditional solvent-based paints center on environmental and workplace hazards caused by the release of VOCs during manufacture or use.
In regions with significant consumer/DIY markets, such as North America and Western Europe, consumers have readily embraced water-based latex paints for their wide range of color and finish options, and their ease-of-use and easy cleanup.
Factors such as the elimination of the need for paint thinners and the low odor characteristics of latex paints will promote the development of larger consumer/DIY segments in countries where professional painters have traditionally dominated the market.
In most developed markets, water-based formulations already account for at least 65% of the paint and coatings market, although Japan is a notable exception due to its high proportion of manufacturing and specialty coatings demand, as well as the lack of significant government regulations concerning paint sector VOC emissions.
While the trend is largely complete in mature paint markets, growth in water-based and other non-solvent coatings will be fueled by ongoing reformulation efforts in developing countries, where solvent-based paints are still prevalent.
Global demand for paint and coatings is forecast to increase 2.7% per year to 63.7 million metric tons valued at $230 billion in 2024. Market advances will be driven by:
rising personal incomes and improving housing conditions in the Asia/Pacific region
significant growth in manufacturing and construction activity in India
increasing DIY activity in developed countries, particularly in the US
rapid expansion of nonresidential construction in the Asia/Pacific region, bolstering demand for architectural paint in these countries
global increases in motor vehicle production and ownership, supporting demand for OEM and refinishing coatings
rising infrastructure construction in developing countries, boosting demand for coatings used on roads and bridges
However, stronger growth will be restricted by lesser opportunities in large, developed countries. Construction of new housing and nonresidential buildings is expected to decline in Europe and the US, respectively.
Global Paint & Coatings Market Rebounds Strongly From 2020 Declines
In 2020, the pandemic resulted in the contraction in the manufacturing of such as furniture and motor vehicles as well as in new housing construction, which combined caused the market for paints and coatings to dip in that year. However, paint and coatings are often necessary for use with a wide variety of products that are generally considered essential, including housing, furniture, motor vehicles, and packaging. As these markets rebound in 2021, they will boost demand for paints and coatings, which is expected to remain relatively strong over the long term due to ongoing healthy expansion in a number of areas.
Significant Growth Opportunities Exist in Southeast Asia
Rapidly developing countries in Southeast Asia – including Indonesia, Thailand, the Philippines, and Vietnam – offer strong opportunities for new sales in all areas. Manufacturers based in Western Europe and North America are investing in expanding manufacturing throughout these countries, which boosts demand for:
manufacturing paint and coatings used in the production of products such as motor vehicles, furniture, and packaging
specialty coatings used on industrial lines
Additionally, these countries are quickly improving their housing stocks, infrastructures, and commercial centers. As economies expand, personal incomes in the region are rising and more consumers are able to purchase products such as automobiles and appliances such as refrigerators, boosting demand in the near and long term.